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Death Knell of the US Dollar...

 
paladin
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11/26/2006 03:41 PM
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Death Knell of the US Dollar...
Death Knell of the US Dollar...
Clive Maund
Nov 27, 2006

The dollar plunged with startling ferocity late last week, driven by heavy selling. This was very bearish action that signals panic, and the probable onset of a severe downtrend. A break below the crucial support at 80 on the dollar index is expected to mark the transition from a clandestine unloading of dollar assets to an all-out stampede to "get what you can for them" before it's too late.

The conditions leading to an inevitable dollar panic sell-off did not come about overnight. They are the result of years of abuse, principally by the Federal Reserve of the US, which has created a veritable blizzard of dollars, and the universal acceptance of this "funny money" has, up until now, allowed the United States to freeload economically on the rest of the world, living way beyond its means. The exponential growth in dollars has been and is created electronically at the touch of a button, so that paying for anything is never a problem, whatever you want you simply print the extra money to pay for. Because foreigners have so far played along with this game, they are now widely, and to some extent understandably, regarded as stupid. However, it is a dangerous mistake to underestimate the mental capacities of other peoples.

The Chinese, in particular, have an ancient and deep culture, and when it comes to strategic considerations, can outthink - and outflank - virtually anyone. So what's going on? - why have they accepted a mountain of paper and IOUs over many years in exchange for real hard work and a vast quantity of real tangible products? The Chinese, and others, have done this to carry them over a bringing period during which they have built up their economies and infrastructure. Their goal - which they are fast moving towards - is to arrive at the point where there is sufficient domestic and regional demand that they no longer need to rely on orders from countries like the United States. At this point - which we may arrive at sooner rather than later - things will become very dangerous for the US dollar, and the situation is actually far worse than many now believe, because the Chinese and others are preparing to WRITE OFF THEIR DOLLAR ASSETS AS A BAD LOSS - they will try to get what they can for them, of course, but otherwise will be ready to fall back on domestic and regional demand and tough it out, thus severing the umbilical with the United States, which will be left stranded, with no takers for its funny money, a gutted manufacturing base, astronomic debts and fiscal chaos, and a huge military it can no longer afford to service.

When the forces of globalization are let loose, as they have been, this is actually a natural and inevitable process, as orders and work simply move to the lowest bidders. Europe and the United States are uncompetitive and will be sidelined by the powerhouse economies of China and South East Asia. The Chinese and other trading partners with the US are already rotating out of dollars and into Dinars, Euros, commodities generally and Precious Metals at an ever increasing pace. As we already know, this has been a primary driver for the commodities boom. The recent attempt by the United States to maintain its dominance by brute force - a big reason why Iraq was invaded was that it was planning to sell its oil in Euros - is right now, quite literally, running into the sand, and it is now only a question of when, not if, the helicopters arrive on the rooftops to evacuate the last of the embattled US service personnel, like in the film "The Killing Fields", although a last wildly dangerous attack on Iran still cannot be ruled out.

Having looked at the fundamentals, let's now see what the charts have to say about the dollar.




On the 1-year chart for the dollar index we can see how the plunge on Thursday broke the dollar down out of a gentle uptrend that had been in force from the May low. It fell steeply again on Friday to arrive in the support zone at the May - June low. This support may provide temporary relief, but the severity of the decline suggests that it won't be long until it resumes, assuming it pauses at all that is, which it may not. Note the bearish alignment of the moving averages, with the 50-day having closed up the gap with the 200-day in recent months, creating the potential for another severe decline.




On the 6-year chart we can see that the dollar had been marking out a potential Head-and-Shoulders bottom pattern since early 2004, but that the action of the past few days signals that the pattern is aborting, and a clear break below the May lows, which we are close to, will project the index down to the crucial long-term support at and approaching 80. What is the origin of this strong long-term support? To see this we will have to look at a chart going back many years.




The chart going back to early 1987 shows the origins of the strong long-term support at and above 80, for on this chart we can see that it has bounced repeatedly from this level. It approached this level way back in 1978 (not shown), and again in late 1990, and it bounced from it in 1992, again in 1995, and in late 2004. Clearly it is unlikely that the dollar will drop to this level and fall straight through it, without first pausing above it for a while or staging a weak rally. That said, however, the fundamental outlook for the dollar is truly awful for reasons made clear above, and so, despite the strength of support at this level, the dollar is not expected to hold above it for very long. Over the past couple of months it has become obvious to all but those who started it that the US has lost the war in Iraq, and can now only engage in a face-saving or damage limitation exercise. This has further damaged US credibility worldwide. The deficits are a running sore that continues to exert a bearish influence, and big dollar asset holders such as the Chinese are scrambling to unwind their dollar positions, in a manner that avoids precipitating a panic, which will be quite a feat if they achieve it.

What will happen to the dollar if it breaks below the immensely important support at 80? The prospect is an all-out panic and a rout, and its anyone's guess where it will finally bottom out.

Many forward thinking and intelligent US readers are already aware of the gravity of the situation, and have been mobilizing themselves to get at least a portion of their assets either out of the country, or at least out of US dollar denominated assets. This is the way to go, and is what has been emphasized repeatedly on the site.

Nov 26, 2006
Clive Maund


[link to www.321gold.com]
Anonymous Coward
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11/26/2006 03:46 PM
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Re: Death Knell of the US Dollar...
A nicely biased work.

Of course, the goal is to get people to buy gold.
paladin (OP)

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11/26/2006 04:32 PM
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Re: Death Knell of the US Dollar...
YES......YOU CAN GET SOME GOLD.....

or you car ride the dollar all the way down.....like this..


[link to www.youtube.com]



do you feel like the Major?????
paladin (OP)

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11/26/2006 04:43 PM
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Re: Death Knell of the US Dollar...
in the post above...ORG..

if the dollar does not hold at .80.......run for the exit....
midass
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11/26/2006 05:03 PM
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Re: Death Knell of the US Dollar...
When i get my gold, will i be able to scrape off a little of the bar to pay for my groceries ?
paladin (OP)

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11/26/2006 05:34 PM
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Re: Death Knell of the US Dollar...
When i get my gold, will i be able to scrape off a little of the bar to pay for my groceries ?
 Quoting: midass 162054




no...you will not..


1.....you better have your groceries

2.....I don't care what you do.....

3.....I know I have hit a nerve.....when the de-bunkers show up
Inanna of Sumeria

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11/26/2006 06:07 PM
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Re: Death Knell of the US Dollar...
Hi Paladin. kitty

Forex is open [link to www.forex-markets.com]
Gold already up $2 to $640oz in no time at all.
paladin (OP)

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11/26/2006 06:15 PM
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Re: Death Knell of the US Dollar...
 Quoting: Inanna of Sumeria




hey ...Inanna of Sumeria


well it is going to be a hell of a week..


[link to www.rallymonkey.com]


let the games begin..
Inanna of Sumeria

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11/26/2006 06:16 PM
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Re: Death Knell of the US Dollar...
Dollar Drops to 20-Month Low Versus Euro on Growth Concerns
[link to www.bloomberg.com]
By Chris Young

Nov. 27 (Bloomberg) -- The dollar dropped to its lowest since March 2005 against the euro on speculation Federal Reserve Chairman Ben S. Bernanke in a speech tomorrow will highlight concern that U.S. economic growth is slowing.

The dollar is at its lowest in 20 months on an index that measures the U.S. currency's value against six others as traders have raised bets the Fed will cut interest rates in the first quarter of next year to respond to slowing growth. Bernanke speaks on economic growth in New York tomorrow.

``Bernanke will acknowledge the economy is underperforming the Fed's expectations,'' said Harvinder Kalirai, head of research at State Street Corp. in Sydney. ``Easier monetary policy is in store some time earlier next year so this break lower in the dollar is likely to continue.''

The dollar dropped to $1.3178 per euro, before trading at $1.3157 as of 7:24 a.m. in Sydney compared with $1.3094 in late New York trading on Nov. 24. The U.S. currency also dropped 115.55 against the yen from 115.90, trading at its weakest since August.

The dollar will fall to $1.35 per euro and 112 yen in the next six weeks, Kalirai said.

Traders raised bets the Fed will reduce borrowing costs after advisers to President George W. Bush on Nov. 21 cut forecasts for growth next year on a weaker housing market. Gross domestic product will rise 2.9 percent next year, slower than the 3.6 percent forecast in June, the Council of Economic Advisers said.

The New York Board of Trade's Dollar Index has tumbled 2.5 percent in the past week to 83.26, the lowest since March 2005.

The six currencies in the basket for the dollar index are the euro, yen, Swiss franc, British pound, Canadian dollar and Swedish krona. The euro comprises 57.6 percent of the basket.

To contact the reporter on this story: Chris Young in Sydney at
Inanna of Sumeria

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11/26/2006 06:20 PM
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[link to www.rallymonkey.com]


let the games begin..
 Quoting: paladin


That is hillarious ! I kept wanting to hear the rest of the song, great toon of Old School flavor NY style.
ac
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11/26/2006 06:20 PM
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Re: Death Knell of the US Dollar...
Gold was at $870, like 15 yrs. ago? it has $250 to go before it reaches its old high.
Inanna of Sumeria

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11/26/2006 06:22 PM
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Re: Death Knell of the US Dollar...
Gold was at $870, like 15 yrs. ago? it has $250 to go before it reaches its old high.
 Quoting: ac 139564


It's been supressed my manipulation of US$. Adjusted for inflation since 80's, we're way behind and will catch up quickly, and beyond.
Anonymous Coward
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11/26/2006 06:22 PM
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Re: Death Knell of the US Dollar...
Gold is high!?!

Better buy some up!

Suckers!

Arent you suppost to buy when its low?
Inanna of Sumeria

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11/26/2006 06:24 PM
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Re: Death Knell of the US Dollar...
Gold is high!?!

Better buy some up!

Suckers!

Arent you suppost to buy when its low?
 Quoting: Anonymous Coward 11943


It is low, fool. 1rof1 I took a 30% gain this year alone, how about you?

I bought at $250 9/11, and will continue to buy at 1/3 takes.
paladin (OP)

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11/26/2006 06:35 PM
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Re: Death Knell of the US Dollar...
[link to www.todayfx.com]



like I said.....a long week
Anonymous Coward
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11/26/2006 06:35 PM
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Re: Death Knell of the US Dollar...
China is also getting ready to dump 1 trillion greenbacks back into the US economy as well to "diversify" their portfolio. President Hu is also good friends with Solana so I imagine their will be buying a lot of Euros.
Anonymous Coward
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11/26/2006 06:52 PM
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Re: Death Knell of the US Dollar...
you people and your gold!

If the dollar goes into a free fall.....................
DO YOU REALLY THINK THE GOV. WON'T MAKE IT ILLEGAL TO OWN GOLD AND TAKE ALL YOUR GOLD TO PROP UP THE DOLLAR!!!!!!!

Don't think so, try spending your gold when it's illegal to own!

You will be labeled a terrorist thrown in prison without a trail and the Gov. will confiscate everything you own !
paladin (OP)

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11/26/2006 06:55 PM
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Re: Death Knell of the US Dollar...
do you think so...

just like they take your land.......for the greater good



they have to give you fare price for it...
Inanna of Sumeria

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11/26/2006 06:56 PM
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Re: Death Knell of the US Dollar...
you people and your gold!

If the dollar goes into a free fall.....................
DO YOU REALLY THINK THE GOV. WON'T MAKE IT ILLEGAL TO OWN GOLD AND TAKE ALL YOUR GOLD TO PROP UP THE DOLLAR!!!!!!!

Don't think so, try spending your gold when it's illegal to own!

You will be labeled a terrorist thrown in prison without a trail and the Gov. will confiscate everything you own !
 Quoting: Anonymous Coward 48793


There is a time to hold em, and a time to fold em.
Anonymous Coward
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11/26/2006 06:59 PM
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Re: Death Knell of the US Dollar...
you people and your gold!

If the dollar goes into a free fall.....................
DO YOU REALLY THINK THE GOV. WON'T MAKE IT ILLEGAL TO OWN GOLD AND TAKE ALL YOUR GOLD TO PROP UP THE DOLLAR!!!!!!!

Don't think so, try spending your gold when it's illegal to own!

You will be labeled a terrorist thrown in prison without a trail and the Gov. will confiscate everything you own !
 Quoting: Anonymous Coward 48793


Finally someone with a brain speaks!!! Idol1
paladin (OP)

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11/26/2006 07:04 PM
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Re: Death Knell of the US Dollar...
you know I hear this all the time..

my freinds that work for Newmont always brag about the BLUE BLOOD that ownes the company.....



I think the Rockefeller's....and the DuPont's will have something to say about this....when that day comes
Inanna of Sumeria

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11/26/2006 07:07 PM
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Re: Death Knell of the US Dollar...
A Myth Concerning Gold Confiscation
By Roland Watson
March 27, 2006
www.newerainvestor.com

Gold confiscation is a subject that divides gold investors. Some say it won’t happen again and others say it will happen again. The one thing they tend to agree on is that they don’t want it to happen again.

One factor that is sometimes quoted against a likelihood of government seizure of gold is the alleged fact that only a minority of American citizens turned in their gold after Roosevelt issued executive order 6102 in April 1933. If that were true, one may be led to believe that a confiscation decree is something that can be ignored since the government could not possibly enforce a nationwide search of all suspect households. Therefore, the deduction is that the government won’t bother resorting to such coercion.

This article is written to suggest that the following statement by the government of the time was not bluster but largely true:

White House Statement on Returning Gold to Federal Reserve Banks.

April 5, 1933

In the past weeks the country has given a remarkable demonstration of confidence. With the reopening of a majority of the banks of the country, currency in excess of $1,200,000,000, of which more than $600,000,000 was in the form of gold and gold certificates, has been returned to the Federal Reserve Banks.

Many persons throughout the United States have hastened to turn in gold in their possession as an expression of their faith in the Government and as a result of their desire to be helpful in the emergency. There are others, however, who have waited for the Government to issue a formal order for the return of gold in their possession. Such an order is being issued today.”

The anti-confiscation contention is that the people who were waiting for the government to issue a formal order were not for turning their gold in. As can be seen from the above release, $600m or roughly the equivalent of 30 million ounces of gold in coin and certificate had been returned to the banks prior to the executive order.

Now it can be conceded that the people waiting for an official order may have ultimately held onto their gold, but a reading of the order suggests that illegally held gold was probably not going to happen in any great measure. The relevant section is this one:

“All persons are hereby required to deliver on or before May 1, 1933, to a Federal Reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all gold coin, gold bullion, and gold certificates now owned by them or coming into their ownership on or before April 28, 1933, except the following:

(b) Gold coin and gold certificates in an amount not exceeding in the aggregate $100.00 belonging to any one person; and gold coins having recognized special value to collectors of rare and unusual coins.”

Now section (b) is the text of interest. Many have focussed on the numismatical portion, but I have rarely seen much said about the $100 exemption clause. At that time gold was valued at $20 per ounce. The $20 double eagle coin in circulation contained just under an ounce of gold and five of them made up $100.

What is this exemption clause in executive order 6102 saying? It is saying that each person could keep up to five ounces of gold coin in their possession without fear of prosecution! At that time, the adult population of America was about 90 million. In theory, the population could have held onto 450 million ounces of gold if they had the means and will to do it (in practise, this much gold was never minted into coin).

Now the reason I was motivated to write this was an article I saw by the respected gold analyst, James Turk at this link [link to fgmr.com] In that article he argues that there was a widespread illegal hoarding of gold by US citizens. To prove this, he cites Milton Friedman and Anna Schwartz in their book, "A Monetary History of the United States, 1867-1960".

In that book, statistics are given which suggest that 13.9 million ounces of gold were still in circulation in January 1934 and that only about 21.9% of the gold in circulation had been handed in.

The trouble with this statement is that it does not seem to take this 5-ounce exemption clause into account. Although we do not believe that 90 million people actually held 5 ounces each, it would only take each adult in America to legally hold 0.15oz of gold to account for this “missing” 13.9 million ounces. Indeed, even if an attempt was made to take this 5oz exemption into account, I would consider it nigh impossible to differentiate legally held coin from illegally held coin.

How much of these 13.9 million ounces was legally held? Of course, we cannot say definitely, but it seems clear to me that even during the Great Depression, holding five ounces of gold was not an onerous task for many. How much was the average wage in America in 1933? I found a few answers by searching the Internet, but they averaged out at about $1400 per annum. That means that $100 was less than a month’s wage and although the savings rate in 1933 was one of the lowest in recent American history, we suspect many households held more than $100 in savings.

Indeed, it would only take 2.8 million adults or 3% of the adult population to hold 5oz and account for the entire 13.9 million ounces of gold. When we also consider how many probably redistributed their excess gold coins to wives, sons, daughters, parents and so on to avoid confiscation, I think we can safely conclude that illegal hoarding was not a major activity.

Now one may say that if Roosevelt had not included this 5oz exemption then illegal hoarding would have happened. Perhaps it would have but in this threshold rule we see Roosevelt the Socialist in action. For you see, democratic socialism has this thing about progressive taxation and confiscation. Just as people will not start paying tax on their income until they have crossed their personal “allowance”, so it was with this gold clause. How do you get the majority of average income voters on your side on this matter? You simply let them keep a portion of their gold and then give them the added bonus of a 57% windfall when gold is revalued to $35!

So how would this arrested form of confiscation work if it was imposed today? As it happens, five ounces of gold currently costs about $2800. If the average American wage is $40000 today, then this 5oz would form 7% of annual income. In 1933, it would have been 7% ($100 into $1400). Who said gold was not a good store of wealth?

When (not if) confiscation comes back to shore up the Western nations’ failing fiat reserves, would we see something like the 5oz exemption clause come back? I would say so, but then again government may assume that individuals hold so little gold today that such a clause would have no use.

It is a subject I commend to all gold investors as we watch the present fiat-based economy continue to march towards catastrophe in the years ahead.
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11/26/2006 07:12 PM
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Re: Death Knell of the US Dollar...
The USD index is at 83.37.

Is this finally the beginning of the end, after years of excess liquidity, market manipulation, budget/trade deficits, and asset/credit bubbles?
Inanna of Sumeria

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Re: Death Knell of the US Dollar...
Comments on Gold Confiscation and ETFs
By Chris Laird
April 6, 2006
www.prudentsquirrel.com

clip...

What is my point? Gold bullion is not going to be a feasible alternative to flight out of the US dollar because there is not enough of it to make a market. It will all just become ‘not for sale’. The other main alternative would have to be other decent foreign currencies to flee into, because of the size and liquidity required. The US would have to institute currency exchange restrictions like Argentina did a few years ago, where they prevented people from taking out pesos (allowed a very low monthly withdrawal), and froze bank accounts.

Now, it is possible that the US would seek to get the gold bullion from the citizenry, but that would not be the major source of pressure on the USD in a real crisis, that would come from the Forex markets and the US would have to freeze all US dollar denominated accounts to deal with that. Gold would be a very small secondary issue, and would not be the first that had to be dealt with. I do believe however, that larger gold depositories would be subject to freezes/attachments. Also, I do not foresee that having these depositories out of the country is going to do much. The US, Japan, and Britain are very closely aligned monetarily, and will cooperate in a real USD crisis and lock up large gold depositories under their jurisdictions.

It is my opinion that a few hundred or few thousand ounces in one’s personal possession will be a very small issue to the US government, particularly since it will not be necessary to call in gold coin US currency since we abandoned this long ago.

There is another issue. Since gold is non traceable, it is possible that the US government would seek its control for security issues. In fact, there are stories out that some large gold ETFs are vehicles of choice for non legal money. That is not the ETF’s fault, but it does put a spotlight on them in this regard. It may be possible that transacting in gold bullion would be too dangerous in a security alerted world. In that case, gold would have to just be kept for a later time, and not spent.
Anonymous Coward
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11/26/2006 07:14 PM
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Re: Death Knell of the US Dollar...
US dollar = tp
paladin (OP)

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11/26/2006 07:17 PM
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Re: Death Knell of the US Dollar...
GOLD..........$641.60
SILVER........$13.58


in over seas trading
Inanna of Sumeria

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11/26/2006 07:26 PM
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Gold May Advance on Expectations Dollar's Slide Will Continue
[link to www.bloomberg.com]
By Danielle Rossingh

Nov. 27 (Bloomberg) -- Gold may gain for a second week on expectations the dollar will extend its slide against major currencies including the euro, spurring investors to buy the metal as an alternative asset.

Sixteen of 26 traders, investors and analysts surveyed by Bloomberg News from Sydney to Chicago on Nov. 22 and Nov. 23 advised buying gold, which gained 2.7 percent last week in London to $638.20 an ounce. Five respondents recommended selling the metal, and five were neutral.

The dollar fell to a 19-month low against the euro on Nov. 24. President George W. Bush's economic advisers said last week U.S. growth will slow next year, reflecting a slump in the housing market. That prospect is fueling speculation the Federal Reserve will cut its benchmark interest rate next year, reducing returns on dollar-denominated assets.

``We are bearish on the dollar, and in turn bullish on gold,'' said Paul Walker, chief executive officer of London- based research company GFMS Ltd. ``You have the twin deficit and the housing slump in the U.S. There has to be a move out of the dollar into alternative investments such as gold.''

Gold for December delivery gained 1 percent to $629 an ounce last week on the Comex division of the New York Mercantile Exchange. The move was in line with the forecast of a majority of analysts surveyed Nov. 16 and Nov. 17. Bloomberg's survey has forecast the direction of prices accurately in 82 of 135 weeks, or 61 percent of the time.

Counter Moves

The dollar and gold often move in opposite directions. The correlation coefficient for gold and the euro is 0.545 based on the coincidence of closing daily gains and declines this month. A reading of -1 would indicate prices move opposite each other, while 1 would signal they move in lockstep.

Gold for immediate delivery is headed for its sixth consecutive annual gain, the longest winning streak since central banks allowed the price of bullion to find its own level in the free market in 1968. Investors are speculating the metal will continue to outperform stocks and bonds.

Bullion prices have more than doubled in the past five years, while the Standard & Poor's 500 Index of shares has gained 22 percent. U.S. Treasuries have returned about 21 percent including reinvested interest, Merrill Lynch & Co. indexes show.

``It remains a dollar story,'' said Sunil Ramrakhiani, head of IL&FS Investsmart Commodities Ltd. in Mumbai. ``We have been betting on this for long.'' Ramrakhiani forecasts bullion will trade between $621 and $650 an ounce next week.

The euro on Nov. 24 rose to $1.30 for the first time since April 2005 after the French government said business confidence in the region's second-largest economy held near the strongest in five years. Confidence in Germany, Europe's largest economy, unexpectedly advanced to a 15-year high, a report showed a day earlier.

ECB Versus Fed

European Central Bank policy maker Miguel Angel Fernandez Ordonez said Nov. 23 in Madrid that he sees further signs of inflation in the euro region, suggesting the bank will push borrowing costs higher into 2007. The ECB raised its key rate a quarter point to 3.25 percent Oct. 5, prompting the euro to gain 3 percent against the dollar.

By contrast, the Fed ended a run of 17 consecutive quarter- percentage point rate increases in August. Policy makers have kept the target overnight lending rate between banks at 5.25 percent for the past three meetings.

A wider interest-rate gap between the U.S. and Europe ``will be less supportive for the dollar and positive for gold,'' said Michael Widmer, director and head of metal research in London at Calyon, a unit of Credit Agricole. Widmer, who is forecasting the metal may rise to $650 an ounce by the end of the year, recommends investors buy gold next week.

Jewelry Demand

The gold market is also being supported by growing demand from India, the world's biggest buyer of the metal, much of it for use in jewelry. The country imported 100 tons of bullion in September, compared with 19 tons in June, according to Walker.

Gold may also get a boost from increased political tension in the Middle East following the assassination of Lebanese Industry Minister and Christian politician Pierre Gemayel on Nov. 21, some analysts said.

His death `` will escalate Mideast tensions, and lift the price of gold,'' said Thomas Au, principal at R.W. Wentworth & Co., a New York-based consulting company.

Gemayel's death is the fifth of a prominent figure who opposed Syrian influence in Lebanon since the February 2005 assassination of former Prime Minister Rafiq Hariri.

Heightened political tension spurs some investors to buy gold as haven. Gold for immediately delivery surged 5.3 percent on Sept. 11, 2001, the day terrorists attacked the U.S.

Last Updated: November 26, 2006 14:36 EST
paladin (OP)

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[link to www.signonsandiego.com]


NY gold, silver stage furious rally on falling dollar



Silver was also boosted by strong “underlying demand” for the metal, according to Platt, and the increasing perception that a stronger global economy will boost the appetite for the white metal.

Analysts said the market could well explode to even higher ground after the Thanksgiving break when many major players return to the market on Monday when business resumes after the Thanksgiving holiday closures on Thursday and Friday.
paladin (OP)

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Re: Death Knell of the US Dollar...
Defeat the Coin Act of 2006

Lee Rogers

Over this past summer a bill was introduced in the U.S. House of Representatives called the Currency Overhaul for an Industrious Nation. This bill is also referred to as the Coin Act of 2006 or House Resolution 5818. Introduced by Representative Jim Kolbe from Arizona the bill was referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology this past August. The purpose of the bill according to the text of the bill itself is to modernize the legal tender of the United States, and for other purposes. The mainstream media has sold this bill to the American people as legislation that will move to get rid of the penny. Even though that is one of the proposals included in the bill, there are much more significant things in the bill which makes me dead set against it. I hope this bill gets defeated because it further increases the power of the Federal Reserve



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Anonymous Coward
User ID: 162568
United States
11/26/2006 07:40 PM
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Re: Death Knell of the US Dollar...
"you people and your gold!

If the dollar goes into a free fall.....................
DO YOU REALLY THINK THE GOV. WON'T MAKE IT ILLEGAL TO OWN GOLD AND TAKE ALL YOUR GOLD TO PROP UP THE DOLLAR!!!!!!!

Don't think so, try spending your gold when it's illegal to own!

You will be labeled a terrorist thrown in prison without a trail and the Gov. will confiscate everything you own !"

Dude are you on crack? This is what ther 2nd amendment was made for TJ (Jefferson) forsaw this hard to take gold from someone when you are soaking up lead at 3000 feet per second!~!~
Anonymous Coward
User ID: 162054
United States
11/26/2006 07:57 PM
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Re: Death Knell of the US Dollar...
There are far greater things in life than wealth. It is to bad the capitalistic socity dosen't see them. Consume until consumption feeds upon itself. Your gold has been ripped from the Mother that supports your life. Think of the destruction that has to take place in order for you to hold those precious ounces...you place a value on money yet the true wealth eludes you.

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